IBEX MEDIUM CAP® and IBEX SMALL CAP® are the indices of the medium and small capitalisation companies traded on SIBE (Exchange Interconnection System of the four Spanish stock exchanges). They have been created with the objectives of, giving better insight into these securities, becoming a national and international reference of the evolution of the medium and small capitalisation companies, and being a reference for investment products. Technically they are price indices, weighted by capitalisation and adjusted by free float of each constituent. Also calculates IBEX MEDIUM CAP TOTAL RETURN, IBEX MEDIUM CAP NET RETURN, IBEX SMALL CAP TOTAL RETURN and IBEX SMALL CAP NET RETURN.

2. How and when are the constituents of the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices selected?

In order to be eligible for the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices, the stocks shall not be included in the IBEX 35®, they must be listed in the principal market¹, have a free float above 15 % and an annualized rotation of at least 15% of their real free float capitalisation.The stocks that meet the previous criteria will be ranked by free float capitalisation. The first 20 companies of the ranking will be the constituents of the IBEX MEDIUM CAP® index and the next 30 will form the IBEX SMALL CAP® index. Every six months the Technical Advisory Committee of the IBEX® indices will select the constituents of these indices. There are two ordinary meetings of the committee (June and December). In both meetings the committee will use the data from the six months previous to the date of the meeting (December to May and June to November respectively), and the new constituents will be effective the following trading day after the third Friday of the month of the meeting (June and December respectively). Extraordinary meetings may take place according to special circumstances.

¹ Main Trading Market

3. What does the annualized rotation of at least 15% of their real free float capitalisation criteria means in the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices?

To ensure an adequate liquidity, the eligible stocks for the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices must have an annualized rotation (velocity) greater than 15% of their free float capital. The annualized rotation is the result of multiplying the volume traded on the control period by two, and dividing it by the free float capitalisation¹ of the company at the end of the control period. This result must be greater than 15%.

¹ The free float capitalisation is the capitalisation of the company taking into account the free float value of that company (see question number 5).

4. May a security be chosen to be included on IBEX MEDIUM CAP® or IBEX SMALL CAP® by taking into account the sectors already represented on the index?

Among the criteria considered for the inclusion of a security on the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices, in no event is the economic sector it belongs to taken into account, because IBEX MEDIUM CAP® and IBEX SMALL CAP®, as IBEX 35®, are not subject to any specific sector diversification.

5. What number of shares is considered when deciding to include a security on IBEX MEDIUM CAP® or IBEX SMALL CAP®?

To guarantee an adequate liquidity, the eligible securities for the IBEX MEDIUM CAP® and IBEX SMALL CAP®, must have a free float greater than 15% of the total capitalisation of the company.

The free float is the number of shares outstanding on the market that do not belong to a direct shareholding (block ownership capital that is therefore not outstanding on the market). According to the data in the CNMV Register prior to the Committee meeting, block ownership capital shall be deemed to be:

Direct shareholdings greater than or equal to 3% of the share capital, and

Direct shareholdings held by the members of the Board of Directors regardless of their amount.

The Committee shall take the preceding data¹ into account and it shall consider the relevant facts that have been officially notified to the CNMV before the end of the control period of every ordinary or extraordinary review, which affect the calculation of the free float on dates close to the application of the Committee's decisions. Finally, the Committee may appraise any other circumstances in the composition of the shareholding registered at the CNMV which has any influence over the efficient replication of the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices, also taking into account, as the case may be, the indirect shareholdings declared.

After calculating the free float of the chosen security, in order to arrive at the number of shares counted on the index, depending on the free float, a coefficient is applied to the total shares of the company, as set out on the table below:

Coefficient to Be Applied Depending on the Free Float (3.1.2.2.B of the Regulations)

Free Float

Applicable Coefficient

Less than or equal to 10%

10% (not applicable for IBEX MEDIUM CAP® and IBEX SMALL CAP® )

More than 10% and less than or equal to 20%

20%

More than 20% and less than or equal to 30%

40%

More than 30% and less than or equal to 40%

60%

More than 40% and less than or equal to 50%

80%

More than 50%

100%

For instance, for securities with a free float between 40% and 50%, the coefficient to be applied to the total number of shares of the company for the purpose of its weighting on IBEX MEDIUM CAP® and IBEX SMALL CAP® will be 80%².

¹ Even if the holder appearing on the Register is a nominee, unless it communicates to the CNMV in the appropriate manner that such shareholdings taken individually are below 3%. ² The major objective of the free float bands is to simplify the replication of the index, in such a way as to avoid continuous minor readjustments. Changes in the number of shares (free float) for the purpose of calculating the index take place, other than under exceptional circumstances, as from the date when the decisions made by the Committee at its ordinary meetings enter into force, i.e., as from the following trading day after the third day of the month (June and December).

6. May a security be a constituent of IBEX MEDIUM CAP® or IBEX SMALL CAP® and at the same time of the IBEX 35®?

No. According to the composition criteria of IBEX MEDIUM CAP® and IBEX SMALL CAP®, the securities which form part of IBEX 35® can not be part of these indices at the same time.

7. How many securities are included or excluded in each biannual review?

In the half-yearly selection of the constituents securities of the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices, no minimum or maximum number of changes is established in relation to the preceding period. There may be no changes at all or as many changes as deemed appropriate, according to the outcome of the selection criteria (see question 2). But it is important to bear in mind, that a change in the composition of IBEX 35® will affect the composition of IBEX MEDIUM CAP® and IBEX SMALL CAP®. Also a change in the composition of IBEX MEDIUM CAP®, will affect the composition of IBEX SMALL CAP® according to the composition criteria of those two indices, which establish a ranking of 50 securities, from where the 20 first ones will form the IBEX MEDIUM CAP® index, and the 30 left will form the IBEX SMALL CAP® index.

8. Is a security whose price rises dramatically over a long period an ideal candidate to be included on IBEX MEDIUM CAP® or IBEX SMALL CAP® ?

The evolution of the price of a security is not one of the factors taken into account by the Committee in its decision-making process-this is based exclusively on the above mentioned rotation and free float criteria. Even though statistically there is often some relation between price hikes in a security and increases in terms of liquidity, a security has to have an annualized rotation above 15% to be included on IBEX MEDIUM CAP® or IBEX SMALL CAP®

9. Which is the base date and index value for the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices?

The date and index value for both indices is 29th of December 1989 with an index value equal to 3000. The historical series of IBEX MEDIUM CAP® continues the series of the previous IBEX COMPLEMENTARIO® as from the 1st of July 2005, while the historical series of IBEX SMALL CAP® is a new generated series following the current securities data back through time. Both series are available at the website of Sociedad de Bolsas, S.A. http://www.sbolsas.com

10. Throughout the life of a company there may be relevant facts affecting its present and future: capital increases, mergers, segregations, takeovers, etc. If the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices are reviewed twice a year, are these facts taken into account?

Yes. Although the IBEX MEDIUM CAP® and IBEX SMALL CAP® indices are reviewed biannually, for the purpose of revaluating the securities making up the index and calculating the number of shares taken of each security, whenever financial transactions take place affecting the securities included on the indices, the necessary adjustments are made. The indices are generally adjusted in the event of capital increases with preferential subscription rights, extraordinary dividend payouts, share integrations as a result of capital increases without preferential subscription rights¹, reductions of capital by cancellation of shares, reductions of capital charged to equity accounts, with a distribution of the amount of the reduction to the shareholders (but not similar to an ordinary dividend), mergers, takeovers, and segregations of equity.

¹ If the share integration represents a percentage below 1% of the number of shares taken to calculate the value of the indices, the adjustment shall be made every six months, coinciding with the re-composition of the indices.